ISLAMABAD: Pakistan Customs has launched proceedings to cancel the public bonded warehouse license of state-backed Pak-Arab Refinery Ltd (Parco), accusing the refinery of illegally releasing high-speed diesel and motor spirit worth billions of rupees without mandatory clearance documents, a lapse authorities say cost the national exchequer badly needed duties and taxes.
The move coincides with a recent FIR lodged by the Federal Investigation Agency (FIA) against GO Petroleum over alleged customs violations tied to bonded fuel movements. Investigators accuse the importer and a bonded terminal operator of siphoning more than 32,000 metric tonnes of tax-unpaid fuel into the black market through the country’s main cross-country pipeline.
Instead of addressing the allegations, Parco has instead approached the Petroleum Division, questioning whether the Collectorate of Customs (Appraisement) Faisalabad has the authority to issue it a show-cause notice, a step that raises more questions than it answers, a top official of the Petroleum Division told The News.
Customs had given Parco 15 days to explain why its licence should not be revoked, warning of further legal action. The refinery’s representative was summoned to appear before the Faisalabad Collectorate on July 3 with supporting documentation, alongside a detailed list of deliveries and WeBOC transfer records cited as evidence. But, instead giving reasons and clarification, it challenged the jurisdiction of the customs.
Parco did not respond to multiple phone calls by The News nor did the company’s managing director respond to a detailed list of questions sent to him.Customs alleges Parco violated multiple provisions of the Customs Act, 1969, by delivering bonded petroleum products to GO Petroleum between January 1 and April 24, 2026, without obtaining ex-bond goods declaration approvals or paying applicable duties. An audit found the refinery released imported diesel and motor spirit directly to GO Petroleum despite legal requirements that such goods remain under customs control until formally assessed and cleared.
Authorities cited violations of Sections 97, 99 and 116 of the Customs Act, alongside Rules 46 and 52 of the Customs Rules, 2001, saying the breaches delayed, and in some cases entirely avoided, payment of duties and taxes.
